Motor Trade New Car Sales still struggling

Motor Trade New Car Sales still struggling

According to recent stories in the motor trade press car manufactures are still feeling the effects of the global recession.

It is reported that Nissan who make cars such as the Micra and 350z are planning on cutting around 20,000 jobs worldwide, this is on the back of recently cutting 1000 jobs at its Sunderland plant.

Ford are also another manufacturer who are struggling in the current economic climate. Ford who make modes such as the Ford Focus, Ford Fiesta and Ford Mondeo are reported to have asked their staff for 500 voluntary redundancies at their factory that makes the Ford Transit.

Whilst Toyota who make cars such as the Yaris and Auris have also publicised profitability figures that show huge losses.

 Honda who make cars such as the Accord and Civic also announced earlier on in the year that it would be closing its plant in Swindon for a proposed 4 months due to the reduction in demand.

A lot of motoring journalists are asking the questions as to why the motor trade industry is feeling the pinch so much, is it down to the gloomy economic climate or is there more to it? There is growing number of writers who believe that heart of the problem started much further back than the motor traders forecourts and is down to laziness and false sense of security of the people who head up the running these huge motor manufacturers.

On a more positive note not all sections of the motor trade are suffering. It has been reported that there is still swift trade to be had in the second hand car sales market. It has been reported that the demand for road risk motor trade insurance policies has risen by 18% this year.

Chris Lear Managing Director of Onesure Insurance, who are an Insurance Broker who specialise in Motor trader insurance states “We are definitely seeing an increase in demand for people requesting new motor trade insurance quotations. I think that people are turning their hand at trying to sell vehicles on for a profit as a way of trying to make a bit more money during these testing economic times.”